Mr C had just retired. He wanted to reorganise his finances to suit his and his wife’s retirement plans. It was time for a pension review. This Case Study shows the type work and planning we carried out for Mr & Mrs C in their pension review.
Use This Case Study As A Guide To A Pension Review
Their Situation
Mr & Mrs C had just retired.
Recently ‘downsized’.
£120,000 lump sum from ‘downsizing’.
Mr C had a £245,000 pension lump sum.
Had existing savings and investment portfolio worth £100,000.
Their Financial Needs
After a detailed discussion. These were established to be:
Wished to invest their house sale proceeds lump sum for income and capital growth.
Use Mr C’s pension lump sum to provide an income for himself and his wife.
To ensure their existing savings and investment portfolio was tax efficient with competitive charges.
The Next Step
First, we agreed on their ‘Low to Medium’ attitude to risk.
Next, we discussed their investment term.
Third, we discussed any short-term capital objectives.
The funds were re-structured into our ‘Wealth of Choice Two Model Portfolio’. This portfolio is Low/Medium Risk. Also, the portfolio had the same risk profile as their existing portfolio. However, the portfolio had produced 18% more capital growth over the past three years.
Furthermore, the annual management charges were 0.80% per annum less. Even after we added in our 0.75% annual advice charge, our clients would have still been better off. In addition, they will now benefit from our quarterly review of the portfolio funds and regular ‘free fund switch’ advice.
Investing The Lump Sums
We invested £100,000 of the £120,000 house sale proceeds. The £20,000 was kept in short-term savings accounts ‘in case of need’. This was held in Mrs C’s sole name to utilise her remaining personal allowance.
We moved Mr C’s pension fund in to ‘drawdown’. This provides the additional income he required.
Changes in legislation and tax can impact on the advice that we give to our clients. This case study is not guaranteed to work in all circumstances and is intended to be a guide.
Please remember that the value of investments can fall as well as rise.
If your situation changes we recommend having regular financial reviews.
For more information, please view our Pension Review Service.
I have been delighted with the friendly, professional and personal service I receive from Choice Financial Solutions. It was particularly important to me after a significant change in personal circumstances to have the confidence that I was getting expert advice from someone who knew me and the family and could tailor solutions to best fit with us. The yearly meetings with John are very valuable as it is important to me that I can get advice from someone I trust and know I can reply on, and on the occasions where I have contacted John with a query or concern I have always had a prompt and efficient reply… That is why I am still a client!
Sarah SEast Wellow
Excellent service from start to finish.
AndrewHavant
We have been using Choice since they started business. John Quaif is always clear and honest, qualities that have endeared him to us. If there is an issue he’s quick to deal with it and does so having full regard for the client’s perspective. In a way that’s an even more powerful confirmation of the principles underpinning the company. John took over management of our pensions and rapidly kicked things into shape, so we are indebted to him! The review sessions are always well prepared and informative. And the up to date market information is always fascinating! So far, John has managed to preserve the personal touch despite the growth of the company. This is certainly important to us.
PaulSouthampton
First class service from John Quaif. Proactive, responsive and professional at all times.
Eric WTunbridge Wells
Thank you for the recent visit and the advice that you provided. It is reassuring to see that the money we have invested is working for our future needs. We would like to express out thanks for your work on our behalf over the past few years. Choice Financial Solutions have provided an excellent professional service and clearly have their clients’ interests at heart.
David & DebbieKent
Very happy with the friendly service. Good to have meetings at home, making it more comfortable. Felt at ease with the whole process. Thank you!
Joan BFareham
A very professional and helpful service. Extremely responsive and excellent at keeping us up to date. There is no pressure when discussing the various investment options and definitely customer focussed.
Bruce MBrockenhurst
Excellent service from John Quaif and the team. I would not hesitate to recommend.
Julie GIsle of Wight
We have always been listened to and our wishes met. Our investments are long term and give reliable performance.
Alan ESouthampton
15 years of excellent service and counting.
Jim BChandler’s Ford
Outstanding service and great attention to detail has left me feeling very confident and secure in relation to my financial planning. Highly recommended.
Brian WSurrey
Reliable, prompt and trustworthy.
Jeremy GBrighton
Excellent service - always.
Pamela BWinchester
In a complex and difficult market we feel we are in safe hands.
Robert NSouthampton
Excellent service.
Mark HSouthampton
Having had interaction with several financial services companies over a number of years, it’s reassuring to find a trustworthy and diligent firm which really delivers a great service, not just the statutory minimum, but genuinely informative reporting and advisory communications. My returns have been better than expected and I feel that, as the client, I’m actually more important than simply their percentage. Well done Choice and John Quaif.
Martin BNewport IOW
Good, professional service, straightforward with no frills or hidden charges. Recommended.
Antony BSouthampton
I have worked with John at Choice for many years, and always found him to be wonderful to deal with. Nothing is ever too much trouble and the help and guidance received has always been way above what I expected.
Tony DBournemouth
Choice Financial Solutions were extremely helpful and informative at every step of my dealings with them.
